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Harley davidson competitive advantage

26/03/2021 Client: saad24vbs Deadline: 10 Days

Introduction
Harley-Davidson, America’s largest motorcycle producer, is an iconic brand worldwide that provides a unique customer experience. The company produces custom, cruiser, and touring motorcycles, and offer parts, accessories, riding gear, apparel, and general merchandise. The latter provides wholesale and retail financing and insurance to Harley-Davidson dealers and riders located in the United States, Canada, and other international markets. (David & David, 2016). The motor cycle industry is an intensely competitive industry with many big competitors, which is why Harley had struggled over the last few years. This report will cover the following; 1) Harley’s vision and mission statements, 2) Internal/external strengths and weaknesses, SWOT Analysis, and lastly, a recommendation on the strategic direction for the company supported by the two Matrices, SPACE Matrix and the SWOT Matrix.

Company Background
Harley Davidson is America’s largest motorcycle producer that was first incorporated in 1907 by William S. Harley and Arthur Davidson. It started off in a small shed in Milwaukee, Wilsconsin with its first dealership opening in Chicago, 1904. They targeted customer needs with its unique offerings and earned price premiums. Harley operates in two primary business segments, Motorcycle & Related Products (Harley-Davidson Motor Company), and Financial Services (Harley-Davidson Financial Services). In 2014, Harley’s worldwide retail sales increased by 2.7% versus the prior year. The company has sales in almost 90 countries, with one-third of its sales coming from outside the United States. (David & David, 2016). Today, Harley remains a dominant force in the market but faces challenges in creating products relevant to younger riders and women, as well as developing international sales in countries such as India. (David & David, 2016).

Mission and Vision Statement
Many organizations today develop a vision statement that answers the following question, “What do we want to become?” “Developing a vision statement is often considered the first step in strategic planning, preceding even development of a mission statement.” (David & David, 2016). Whereas, a mission statement identifies the scope of a firm’s operations in product and market terms. It addresses the standard question which is, “What is our business?”

Harley-Davidson’s current mission statement is as follows, “We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.” The company’s vision for sustainability is, “We preserve and renew the freedom to ride.” (David & David).

We know that Harley-Davidson’s goal is to increase company shipments by 4-6% to 282,000-287,000 motorcycles worldwide, and projects its operating margin for all of 2015 from the Motorcycle segment to be 18-19 percent. We also know that the company’s strategic plan calls for international markets to play an increasingly significant role. (David & David, 2016). I believe that Harley’s current mission statement is too long as mission statements normally should be about 1-2 sentences long. My proposal for a new mission and vision statement that I feel would better represent the company Harley-Davidson would be as follows:

Mission Statement: “With the speed of our new innovative electric model, our brand will continue to expand globally and sustainably with a speedy, rechargeable engine.”

Vision Statement: “With our creative and innovate skills, Harley-Davidson can make dreams come true.”

I believe these statements better represent the company in terms of where their business wants to go and what they want to become. With the new electric models that are now killing the market as they are more sustainable and environmentally friendly, Harley would have to continue to seek new innovative ideas to remain relevant with their competitors. Another reason why I think these statements better represent Harley-Davidson is because they pursued efforts to reduce the environmental impact of its products and operations, while promoting motorcycling and preserving the authentic Harley experience. (David & David, 2016).

Objectives and Strategies
Defining your objectives and strategies are two important steps in business planning. “Strategic business plan objectives provide the specific details about what a company’s expectations are for meeting their identified goals.” (Richards, 2018). Harley Davidson’s goal is to have its full year company shipments increase 4 to 6% to 282,000–287,000 motorcycles worldwide. The company also projects its operating margin for all of 2015 from Motorcycle segment to be 18 -10%. (David & David, 2016). But, the company needs to come up with a strategy to maintain their customer base as they are aging and continue to compete with their rivals.

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